Why Americans are still angry about inflation, even as it cools

Why don’t Americans give President Biden more credit for a good economy? It’s one of the biggest questions heading into the election. Recently, polls and consumer sentiment have improved a bit. Even so, less than 40 percent of Americans call this a “good” economy — despite strong growth, unemployment below 4 percent, the stock market at record highs and inflation back around 3 percent.

There’s a reason the U.S. economy soared and others were mediocre

The key to understanding what’s going on is inflation. Many experts are looking at it the wrong way. The White House, the news media and Wall Street largely focus on the monthly reports that say how much inflation rose over the past month and year. For example, the latest read was 3.1 percent from January 2023 to January 2024 — down significantly from 6.4 percent a year ago. But many Americans think about inflation over a longer time, focusing on the cumulative increase since 2020. The number that sticks in most people’s heads is 20 percent. This is roughly how much inflation is up since the coronavirus pandemic began. (It’s up about 18 percent since Biden took office).

Inflation has shocked and angered Americans. It doesn’t help that prices for many of the most visible items that people pay for frequently — gas, groceries, electricity and rent — have surged since 2021. Rent is up nearly 20 percent, while groceries are up 21 percent. Meanwhile, electricity is up 28 percent and gas is almost 35 percent higher. Some can recall what they used to pay.

Of course, the inflation news is not all gloomy. Clothing prices have increased only 8 percent and appliance prices about 6 percent since Biden took office. Toys and medical insurance have actually gotten cheaper over the past three years, according to the Bureau of Labor Statistics. But many of these items are infrequent purchases

The administration has been quick to point out that wages have also soared since Biden took office. This has undeniably been one of the best times in decades for people to get better jobs, because companies have had to offer higher pay and added flexibility to attract workers. Since 2020, average hourly wages are up 21.5 percent

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